www.aurelianoil.com
Aurelian Oil & Gas PLC, was founded in December 2002, and is focused on the re-emerging Central and Eastern European oil and gas markets, the oldest producing oil province in the world.
Current projects span the region from Poland to Bulgaria, with production in Romania, a deep appraisal well drilled on a large structure in Poland in March 2007 to be developed with a further horizontal well to be drilled in 2010, together with exciting exploration prospects including projects in four countries, Romania (4 blocks), Slovakia (3 blocks), Bulgaria (2 blocks) and Poland (14 blocks). Aurelian is the operator in all of these except Bulgaria.
Aurelian Oil & Gas finds 100 metre gas column, secures €75m funding
Aurelian Oil & Gas (LON:AUL) has found a 100 metre gas column in its key Trzek-2 well at the Siekierki Gas Project.
The company encountered the gas in the top reservoir within the vertical section of Trzek-2.
"Encountering the estimated 100 metre gas column, on schedule and on budget, is a major step forward,” Aurelian chief executive Rowen Bainbridge said.
Trzek-2 is the first Multi Fracced Horizontal Well (MFHW) to be drilled in Poland. The well represents a major step in the development of the Siekierki Tight Gas Project, where Aurelian already has 346 billion cubic feet (Bcf) of gas.
Aurelian also reported a new €75 million credit facility, saying the company is now fully funded for its forward drilling programme.
Trzek-2 is targeting approximately 16 - 28bcf of recoverable gas reserves.
Now it has tested the vertical section Trzek-2 will be sidetracked and drilled horizontally, towards Trzek-1’s 91 metre gas column.
Trzek-2’s ‘fraccing’ and flow testing is scheduled for completion in December.
The new €75 million financing deal was agreed with Macquarie Bank, and it will last for 4 years.
“The new €75 million Credit Facility can be used to fund the second Multi Fracced Horizontal Well and Gas Processing Facility at Siekierki ... This means that together with our existing cash in hand, we can now fund our previously announced well programme.”
The programme sees eight more wells being drilled by the end of 2011.
The company has also reported further progress at Siekierki as it secured a key long lead item for the processing facility, the Nitrogen Removal Unit (NRU) and facilities Environmental Impact Assessment (EIA) was approved.
Construction remains on track for early 2011, with first gas production targeted at the end of 2011.
Elsewhere at the Bieszczady licence in Carpathian Thrust Fold Belt, Aurelian has now begun its 300km 2D seismic survey.
The company said it has already received ‘good quality information’ from the survey.
“In the Carpathians, we are increasing to 40% the 2D seismic coverage on our highly prospective Bieszczady block where we will be spudding our first well in October targeting prospective resources of 100 million bbs of oil (gross),” Bainbridge said.
Bainbridge emphasised that the coming months promise to be the most exciting in Aurelian’s history.
“We are making significant progress in de-risking our portfolio and appropriately capitalising the business.”
